Why Is Amer Movil (AMX) Up 10.8% Since Last Earnings Report?

Core Viewpoint - America Movil's recent earnings report shows a mixed performance with a notable increase in net income but a decline in total revenues, indicating potential challenges ahead for the company [2][3]. Financial Performance - The net income per ADR for Q4 2023 was 33 cents, up from 22 cents in the prior-year quarter, with total net income reaching Mex$18,062 million compared to Mex$13,710 million a year ago [2]. - Total quarterly revenues decreased by 7.1% to Mex$200,713 million, primarily due to poor performance in the Service and Equipment segments, alongside rising interest rates and unfavorable foreign currency movements [3]. - Service revenues were Mex$164,740 million, down 4.6% year over year, while equipment revenues totaled Mex$33,417 million, down 5.6% year over year [3]. Subscriber Growth - America Movil gained 3.9 million wireless subscribers in Q4, including 2.7 million postpaid subscribers, with Brazil, Austria, and Argentina being the main contributors to this growth [3]. Regional Performance - Peru experienced a revenue decline of 9.2% to 1,6204 million Soles, driven by lower equipment revenues, while Argentina's revenues fell by 10.7% to ARS 210,592 million due to declining service and equipment lines [4]. - Colombia's revenues increased by 3.8% to COP 3,885 billion, attributed to higher fixed-line revenues, while revenues from Mexico, Brazil, Central America, Austria, and other European regions showed modest growth [5]. Cost and Profitability - Total costs and expenses were Mex$122,446 million, down 6.7% from the previous year, with EBITDA decreasing by 7.7% to Mex$78,267 million, resulting in an EBITDA margin of 39% [6]. Liquidity Position - As of December 31, 2023, America Movil had Mex$100,353 million in cash and short-term investments, alongside long-term debt of Mex$339,713 million [7].